Entries about mortgage loan
With adjustable rate mortgages, the interest rates are dependent on general interest rates or what is known as an index. Many adjustable rate mortgages are considered 'hybrid mortgages' and have a fixed introductory period of 1, 3, 5 or 7 years during which time the interest rate does not change. Many other types of ARMs typically have shorter interest rate adjustment periods however. If a homeowner knows that they will only stay in their home for a few years, then a hybrid adjustable rate mortgage loan may meet their needs. It's always important to keep in mind, however, that payments on adjustable rate mortgages could increase when the interest rate resets.